Singapore's ongoing restructuring efforts to weigh on GDP growth: MAS

SINGAPORE's ongoing economic restructuring efforts toward productivity-led growth will throw up further "transitional frictions" such as higher labour costs, which will weigh on overall growth, said the Monetary Authority of Singapore on Tuesday. -- FILE PHOTO: AFP

By Alvin Foo

SINGAPORE's ongoing economic restructuring efforts toward productivity-led growth will throw up further "transitional frictions" such as higher labour costs, which will weigh on overall growth, said the Monetary Authority of Singapore on Tuesday.

But the central bank added in its twice-yearly macroeconomic review that the Singapore economy should remain on a modest growth trajectory this year, even with the softening in the first quarter and ongoing restructuring.

"Domestic demand in the G3 economies continues to provide the greatest support for Singapore's GDP growth."

The G3 refers to the world's key economies of the United States, Europe and Japan.